Macy’s delayed its earnings report as it deals with a multi-million dollar accounting scandal. The company said one employee is responsible for intentionally hiding up to $154 million worth of expenses across three years.
That employee, who’s now fired, is accused of making fraudulent accounting entries while managing small-package deliveries.
Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.
Point phone camera here
Macy’s said it identified the issue in one of its accrual accounts earlier this month before an investigation was able to trace it back to the employee.
As a result, the company had to pause its quarterly earnings report expected Tuesday, Nov. 26.
“While we work diligently to complete the investigation as soon as practicable and ensure this matter is handled appropriately, our colleagues across the company are focused on serving our customers and executing our strategy for a successful holiday season,” Macy’s Inc. chairman Tony Spring said.
This comes as many retailers, including Macy’s, experience struggling sales.
The company announced earlier this year it would be closing around 150 stores over the next three years in an effort to energize its business.
As of Monday, Nov. 25, Macy’s shares were down 3.5%.
Tags: earnings, Economy, Holiday shopping, Investigation, Money, New York Stock Exchange, shopping, Stock Market, Stocks
[Karah]
MACY’S IS DELAYING ITS EARNING REPORT AS IT DEALS WITH A MULTI-MILLION DOLLAR ACCOUNTING SCANDAL.
THE COMPANY SAYS ONE EMPLOYEE IS RESPONSIBLE FOR INTENTIONALLY HIDING UP TO 154 *MILLION* DOLLARS WORTH OF EXPENSES ACROSS THREE YEARS.
THAT EMPLOYEE – WHO’S NOW FIRED – IS ACCUSED OF MAKING FRAUDULENT ACCOUNTING ENTRIES WHILE MANAGING SMALL-PACKAGE DELIVERIES.
MACY’S SAYS IT IDENTIFIED THE ISSUE IN ONE OF ITS ACCRUAL ACCOUNTS EARLIER THIS MONTH BEFORE AN INVESTIGATION WAS ABLE TO TRACE IT BACK TO THE EMPLOYEE.
AS A RESULT, THE COMPANY HAD TO PAUSE ITS QUARTERLY EARNINGS REPORT EXPECTED TUESDAY … WITH A COMPANY SPOKESPERSON SAYING –
“WHILE WE WORK DILIGENTLY TO COMPLETE THE INVESTIGATION AS SOON AS PRACTICABLE AND ENSURE THIS MATTER IS HANDLED APPROPRIATELY, OUR COLLEAGUES ACROSS THE COMPANY ARE FOCUSED ON SERVING OUR CUSTOMERS AND EXECUTING OUR STRATEGY FOR A SUCCESSFUL HOLIDAY SEASON.”
THIS COMES AS MANY RETAILERS … INCLUDING MACY’S … EXPERIENCE STRUGGLING SALES.
THE COMPANY ANNOUNCED EARLIER THIS YEAR … IT WOULD BE CLOSING AROUND 150 STORES OVER THE NEXT THREE YEARS IN EFFORT TO ENERGIZE ITS BUSINESS.
AS OF MONDAY MORNING, MACY’S SHARES WERE DOWN 3-POINT-5 PERCENT.
FOR SAN – I’M KARAH RUCKER.
FOR ALL YOUR LATEST NEWS HEADLINES – DOWNLOAD THE STRAIGHT ARROW NEWS APP TODAY.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
